Major Companies Back Obama’s Climate Regulations In Court

Four corporate titans filed a court brief in support of the Clean Power Plan.

By Ben Walsh and Alexander C. Kaufman

Jacky Naegelen / Reuters

Four big companies have joined the legal battle in favor of the Obama administration’s signature climate change regulations that would curb emissions from coal-fired power plants.

Software maker Adobe, candy company Mars, furniture giant IKEA, and insurance behemoth Blue Cross Blue Shield filed an amicus brief in the U.S. Court of Appeals in Washington, D.C., in support of the Clean Power Plan, which aims to reduce climate change-causing pollution.

The plan, unveiled last summer, would reduce carbon dioxide emissions from power plants by 32 percent compared to 2005 levels by 2030. Twenty-seven states and a group of oil companies are suing, accusing President Barack Obama's administration of overstepping its authority.

“(We) believe the Clean Power Plan, when fully implemented, would not cause business harm to (our) operations as large energy consumers and purchasers,” the four companies wrote in their submission to the court. “Swift and full implementation of the Clean Power Plan will directly benefit" the companies' operations.

Supporters of the plan include 18 states and 208 current and former members of Congress. The Supreme Court in February halted implementation of the plan while the appeals court decides the lawsuit. The appeals court is scheduled to hear arguments in June.

By taking a legal position in support of the Clean Power Plan, the companies intend to show that renewable energy makes financial sense, Rob Olson, IKEA’s chief financial officer, told HuffPost. “It becomes more practical and real when a company can demonstrate their value and the return they see in solutions that provide clean power,” he said. “It makes true business sense across the board. It has produced the return on investment that we need to see.”

IKEA is on track to offset all of its global power consumption with renewable energy production within the next four years. The company said in July it plans to spend $1.13 billion on clean power and steps to help developing countries -- in most cases, those most vulnerable to the effects of climate change -- deal with global warming. Ikea bought 83,000 acres of Romanian forest in 2014 in an effort to reduce wood consumption in its furniture and to more sustainably manage woodlands where it harvests timber.

“We are able to invest in this and have a positive business impact, as well as a positive environmental impact,” Olson said.

In 2014, the company&nbsp;reduced its carbon footprint by&nbsp;10 percent compared to&nbsp;2013 levels,&nbsp;with considerable emission reduction related to&nbsp;its supply chain and product use.&nbsp;<br><br>Investment in renewable energy sources is also key to HP's environmental strategy. The company&nbsp;has increased installed capacity for on-site renewable energy at its facilities by 150 percent.<br><br>In 2015, it&nbsp;signed a 12-year purchase agreement for 112 megawatts of wind power with renewable energy company SunEdison. This contract&nbsp;will allow HP to reach its 2020 operational greenhouse gas emissions reduction goals by the end of the 2015 fiscal year, five years ahead of schedule.<br><br>"Climate change is one of the most critical environmental, economic and societal challenges facing the world today," said&nbsp;Gabi Zedlmayer, vice president and chief progress officer. "At HP, we are working to reduce our carbon footprint across our entire value chain, fundamentally rethinking the way we do business to help drive a low-carbon economy."<br><br>(More about HP's efforts <a href="http://www8.hp.com/h20195/v2/GetDocument.aspx?docname=c04152740">here</a>.)